Greening Africa: Kanga seeks to raise $500m capital for its potash project in Congo
Kanga Potash, a world class, low-cost potash project developer, is seeking to raise about $500m for the first phase of its potash development project north of Pointe Noire in the Republic of Congo.
According to the company’s executive chairman Stéphane Rigny, about 60% of the amount will be debt and 40% equity, including some mezzanine finance. A “significant” part of the equity has already been raised, Rigny says, and Kanga Potash has received letters of intent on debt financing from “several parties.” The company, which is being advised by Vermilion Partners and Natixis, is now moving the project to pre-construction phase. Kanga Potash this month received its exploitation license, while its mining convention is awaiting approval by the Republic of Congo’s parliament. The approval is “an administrative process” which will hopefully be completed by the end of 2022, Rigny says. “I don’t foresee any major roadblocks.”
The previously secured surface rights and letter of conformity under its environmental and social impact assessment gives the Kanga Potash all the necessary regulatory consents as it enters the pre-construction development phase. Exploration drilling in 2017 has shown potash seams with a mineable thickness in excess of 210m at av. 68% carnallite grade (KCl 18.2% equivalent) at depths between 300m and 1,100m. This confirmed that the license contains one of the world’s thickest combined potash seams ever drilled. The Kanga licence area covers 320km2 and is located 32km north of the ROC’s economic hub of Pointe Noire on the Atlantic coast. The Kanga mining area and processing plant are located in close proximity to each other, offering unique logistical advantages compared to competitors.